SCHEDULE II CONDENSED FINANCIAL INFORMATION OF REGISTRANT

12 Months Ended

Dec. 31, 2015

SCHEDULE II CONDENSED FINANCIAL INFORMATION OF REGISTRANT [Abstract]

SCHEDULE II CONDENSED FINANCIAL INFORMATION OF REGISTRANT

SCHEDULE II
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
Form 10-K
Baldwin & Lyons, Inc.
(Dollars in thousands)
Condensed Balance Sheets
	December 31
	2015			2014
Assets
Investment in subsidiaries	$	405,192		$	415,304
Due from affiliates		2,945			2,762
Investments other than subsidiaries:
Fixed maturities		12,181			11,924
Limited partnerships		208			233
		12,389			12,157
Cash and cash equivalents		17,934			16,615
Accounts receivable		6,418			5,157
Other assets		21,067			17,905
Total assets	$	465,945		$	469,900
Liabilities and shareholders' equity
Liabilities:
Premiums payable	$	21,672		$	27,850
Deposits from insureds		23,484			18,303
Notes payable to bank		20,000			20,000
Other liabilities		6,291			4,251
		71,447			70,404
Shareholders' equity:
Common stock:
Class A		112			112
Class B		529			527
Additional paid-in capital		52,946			51,854
Unrealized net gains on investments		38,924			51,840
Foreign exchange adjustment		(1,066	)		390
Retained earnings		303,053			294,773
		394,498			399,496
Total liabilities and shareholders' equity	$	465,945		$	469,900

SCHEDULE II
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
Form 10-K
Baldwin & Lyons, Inc.
(Dollars in thousands)
Condensed Statements of Operations
	Year Ended December 31
	2015			2014			2013
Revenue:
Commissions and service fees	$	23,523		$	22,153		$	21,597
Cash dividends from subsidiaries		20,000			15,000			15,000
Net investment income		120			102			54
Net realized losses on investments		(22	)		(27	)		(11	)
Other		(17	)		126			41
		43,604			37,354			36,681
Expenses:
Salary and related items		17,616			15,543			15,965
Other		7,297			7,978			6,633
		24,913			23,521			22,598
Income before federal income taxes
and equity in undistributed
income of subsidiaries		18,691			13,833			14,083
Federal income tax benefit		(350	)		(294	)		(348	)
		19,041			14,127			14,431
Equity in undistributed income
of subsidiaries		4,242			15,590			22,157
Net income	$	23,283		$	29,717		$	36,588

SCHEDULE II
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
Form 10-K
Baldwin & Lyons, Inc.
(Dollars in thousands)
Condensed Statements of Cash Flows
	Year Ended December 31
	2015			2014			2013
Net cash provided by operating activities	$	21,841		$	19,719		$	15,125
Investing activities:
Purchases of long-term investments		(4,792	)		(6,398	)		(10,322	)
Sales or maturities of long-term investments		4,194			5,253			9,982
Distributions from limited partnerships		-			13			-
Net purchases of property and equipment		(4,921	)		(6,873	)		(1,775	)
Other		-			-			(362	)
Net cash used in investing activities		(5,519	)		(8,005	)		(2,477	)
Financing activities:
Dividends paid to shareholders		(15,003	)		(14,947	)		(14,943	)
Drawings on line of credit		-			10,000			-
Net cash used in financing activities		(15,003	)		(4,947	)		(14,943	)
Increase (decrease) in cash and cash equivalents		1,319			6,767			(2,295	)
Cash and cash equivalents at beginning of year		16,615			9,848			12,143
Cash and cash equivalents at end of year	$	17,934		$	16,615		$	9,848

Note to Condensed Financial Statements -- Basis of Presentation

The Company's investment in subsidiaries is stated at cost plus equity in the undistributed earnings of subsidiaries since the date of acquisition.  The Company's share of net income of its subsidiaries is included in income using the equity method.  These financial statements should be read in conjunction with the Company's consolidated financial statements.